Good credit can save you money because it gets you financing at a cheaper rate. It also gives you favorable treatment from banks and credit card companies. For the most part your credit score is based on how promptly you make your payments and not having to great of an outstanding balance owed.Your credit score will be hurt by payment delinquencies and the closing out existing credit cards that you have but do not use.
Be very hesitant about using credit repair companies that charge for their services. They cannot do anything for you the you can’t do for yourself under the Federal Credit Repair Act.
The trick that will help you improve your credit score is this. When you receive your monthly credit card statement it appears as though you have the option of paying either a minimum amount or the monthly balance. If you normally pay the minimum, pay an amount reasonably over the minimum (10 – 15%). This will accelerate lowering your existing balance and this makes credit card companies very happy. Try it for a few payments and see what the results are credit wise. Eventually the balance has to be paid off anyway.